Selling your home for sale by owner can be a great way to save money on the transaction of your home. The Denver Real Estate market is definitely a sellers market which is driving more and more For Sale By Owners.
Here are 10 steps that can help you sell your Denver home as a for sale by owner:
Step 1: Pricing Strategy – Complete a market analysis and understand the current market value of your home. Create a marketing strategy to best capitalize on the sale of your home. Be sure to price the home correctly to drive maximum exposure without leaving any money on the table.
Step 2: Listing Documents & Disclosures – There are several documents required to be completed before marketing your property as a for sale by owner including the “Seller’s Property Disclosures”. These are important documents you will need to provide the buyer with before, during, or after the inspection.
Step 3: Photography, Showings & Marketing – Hire a professional photographer take photos of your home so it’s presented in the best possible way and attracts buyers immediately. Always use a company that specializes in Real Estate Photography if possible. Plan to launch your home via MLS if possible towards the end of the week to drive heavy weekend foot traffic. MLS syndicates it’s listings across 100’s of sites so finding a service that can put you on the MLS is very important.
Step 4: Title Company – Find a good option for a Title Company and make sure they have all the necessary documents throughout the transaction so they will provide a commitment to offer “Title Insurance” upon closing the sale. This will also ensure a fast and seamless closing.
Step 5: Offers – Receive, review and accepting an offer is an art and a science. A Buyer’s Agent prepares the 16-page “Contract to Buy and Sell” and presents this to you. Review the offers together and understand the different legal clauses, including the pros and cons of each offer so you can make the best decision for your situation. Just because an offer is higher does not always mean the offer is better. Knowing what to look for when it comes to financing options, cash offers, and contingencies are key.
Step 6: Seller’s Property Disclosures – These sent to the Buyer’s Agent and Buyer for review and signing. These are the documents that you prepared in step 2 before going active on the market.
Step 7: Inspection – The Buyer will hire a licensed inspector to perform a complete inspection of the property and typically submits an “Inspection Objection”, should they find any issues. Be sure to understand exactly what to look for in the inspection and negotiate a mutually acceptable resolution for both buyers and sellers.
Step 8: Appraisal – The Buyer’s lender will hire an independent Appraiser to perform an appraisal of the property for the loan. You will need to work with the lender and the Appraiser to ensure you and the buyer support their processes. Appraisals, especially in the Denver market, can drastically affect the outcome of the sale. Paying a “Gap” is very common in certain areas of Denver. Knowing the financial situation of your buyer is very important in preventing offers from falling through.
Step 9: Loan Approval – When the Buyer’s loan is approved you will need to set up the “Closing Meeting” where all parties come together to sign the documents and finalize the sale of your property. It is always a good idea to hire an Attorney or Real Estate agent to represent you and review you docs.
Step 10: Closing – The “Closing Meeting” is usually held with the Title Company, Buyer’s Lender and Buyer’s Agent to ensure all proceeds of your home, all documents are signed and your legal obligations are taken care of. This is where proceeds, keys, garage openers, etc are exchanged. This is the most exciting and sometimes the most stressful part of the process.
Hopefully, this for sale by owner Checklist will help you sidestep any mishaps on your journey in selling your home. BlueMatch in Denver is always available for a free consultation if you have any questions about the For Sale By Owner process.